Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework
Technical Assistance Reports, September 20, 2024
Source details
- Canonical URL
- Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework
Other formats
Bibliographic details
- Published: September 20, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400290251.019
Mission scope and activities
- Follow-up to the 2019 FSSR through a hybrid remote TA mission supporting the Reserve Bank of Zimbabwe (RBZ) on finalizing the implementation of the Basel III liquidity framework, with a particular focus on the Net Stable Funding Ratio (NSFR).
- Reviewed drafts of the NSFR regulation and the template for prudential reporting.
- Supported the RBZ to elaborate a questionnaire for a Quantitative Impact Study (QIS).
- Discussed identified gaps with the BSD management and relevant supervisors.
- Delivered training on Liquidity Coverage Ratio (LCR) and NSFR.
- Provided recommendations on enhancing the drafts of regulation and reporting templates.
- Discussed outputs of LCR first assessments, highlighting the importance of checking the quality of LCR data reported by banks.
Key findings
- The mission identified gaps in the draft NSFR regulation and prudential reporting templates that required clarification and enhancement.
- Initial LCR assessments were completed and their outputs were discussed with RBZ, with emphasis on the need to verify the quality of reported LCR data from banks.
- Capacity-building needs were evident, addressed through targeted training on LCR and NSFR.
Policy recommendations and TA deliverables
- Enhance clarity and completeness of the NSFR regulation drafts to align with the Basel III liquidity framework.
- Improve the prudential reporting template to capture necessary data for monitoring NSFR and LCR compliance.
- Implement the QIS questionnaire developed with RBZ to assess quantitative impacts of NSFR requirements on banks.
- Strengthen supervisory review processes to identify and close gaps discussed with BSD management and relevant supervisors.
- Establish procedures to routinely check and validate the quality of LCR data reported by banks.
Training and follow-up
- Delivered training sessions covering both LCR and NSFR concepts, measurement, and supervisory assessment.
- Recommended continued technical assistance and training to support RBZ in implementing and supervising the Basel III liquidity framework, including the conduct and analysis of QIS results.
Publication metadata
- Pages: 23
- Volume: 2024
- DOI: https://doi.org/10.5089/9798400290251.019
- Issue: 081
- Series: Technical Assistance Report No. 2024/081
- Stock No: TAREA2024081
- ISBN: 9798400290251
- ISSN: 3005-4575
Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework, September 20, 2024.
Content in this bundle
- Tarea2024081 Print Pdf